Autumn Budget 2017 introduced stamp duty land tax ('SDLT') relief for first time buyers of residential properties costing no more than £500,000.
From 22 November 2017, first time buyers will pay SDLT on the first £300,000 of the purchase price, with the remainder of the price being charged at 5%. No SDLT relief will be available where the price paid exceeds £500,000.
Having now seen the detailed provisions on the relief, it's worth noting that where there are joint purchasers, each of them must be a first time buyer in order for the relief to be available.
For example, where a married couple is buying a property, the first time buyer relief will only be available where each of the spouses has not previously owned a residential property. Previous property ownership by either spouse will ‘taint’ the acquisition so that relief is not available.
If you’d like to discuss this further, please contact Jamie Ward, head of PwC’s Stamp Taxes Network, or you usual PwC tax contact.
